Equities far outperform bonds in the ultra-long run, says study

Ultra-long term equity investments have been a lot more rewarding than debt, a study published by Credit Suisse Research Institute in collaboration with London Business School shows.

“Over the last 121 years, global equities have provided an annualised real return (in dollar terms) of 5.3 per cent versus 2.1 per cent for bonds,” shows the study, which has looked at returns for 23 countries since 1900.

In the Indian context, equity returns are even more favourable. Since 1953, equities have generated annualised returns of 6.5 per cent and government bonds only 0.4 per cent.

“Equities remain the best long-run financial